St. Thomas & Southwestern Ontario
Mortgage Refinancing in St. Thomas, Ontario
Refinancing replaces your existing mortgage with a new, larger one and pays out the difference in cash. Done for the right reason it lowers your overall cost of borrowing; done reflexively it just re-amortizes yesterday's spending over 25 years.
This page covers both sides honestly.
Nandan Bajani · Licensed Mortgage Agent | Ontario · The Mortgage Firm Inc.
St. Thomas, Ontario — Daily Update
Compare Today's Mortgage Rates
As of September 18, 2026
2.25% overnight rate held steady, prime near 4.45%, but rising bond yields (5-year GoC near 3.65%) are pushing fixed rates higher
These are the same rates that apply once you refinance.
2-Year
Fixed
4.09%Lowest
Big 6 Bank
Variable
—
3-Year
Fixed
4.19%
Big 6 Bank
Variable
3.84%
Canadian Lender
5-Year
Fixed
4.24%
Canadian Lender
Variable
3.40%Lowest
Canadian Lender
Rates shown are for insured mortgages (down payment under 20%). Conventional/uninsured pricing may differ — contact me for your exact rate.
Source: Ratehub.ca public rate table. Rates shown are examples from a public table and are subject to qualification and change.
Plan your numbers
Run Your Numbers
From equity to closing
How a Refinance Comes Together
- 1
Estimate your equity
Appraised value × 80%, minus your current balance
- 2
Apply & appraisal ordered
An appraiser confirms today's value
- 3
Full re-qualification
Income, credit and the stress test, same as a new mortgage
- 4
Costs confirmed
Appraisal, legal fees, any mid-term penalty
- 5
Funds released at closing
Lawyer disburses, existing mortgage discharged
How much equity you can access
Conventional refinances are generally limited to 80% of the appraised value of the property. Mortgage default insurance is not available on refinances, so the 80% ceiling is firm with prime lenders. An appraisal is almost always required, and it is the appraised value — not your estimate or a neighbour's sale price — that sets the number.
80%
Maximum loan-to-value on a conventional refinance
Documents You'll Need
Recent pay stubs or T4s/Notices of Assessment
Government-issued photo ID
Current mortgage statement and discharge statement
Proof of property tax and home insurance
Documentation for the funds' purpose where relevant, such as renovation quotes or debt statements
Reasons that usually hold up
Consolidating credit card or unsecured line-of-credit balances carrying much higher interest
Funding renovations that you'd otherwise put on credit at a far higher rate
Down payment for a second or investment property, where the overall plan makes sense
Divorce or separation buyouts requiring one party to be removed from title
The costs to weigh
Breaking mid-term triggers a prepayment penalty — three months' interest on most variable mortgages, or the greater of that and an interest rate differential on fixed. Add appraisal, legal fees and possibly a discharge fee. If the penalty is large and your maturity is close, waiting for renewal is often the better call.
When refinancing is the wrong tool
If the underlying issue is ongoing overspending, consolidating debt into the mortgage without changing the pattern typically leads to the cards filling back up while the mortgage is now larger. Refinancing also stretches short-term debt over a long amortization, which lowers the monthly payment but can raise total interest paid unless you keep payments up.
Related reading
Questions people ask
How much can I refinance my St. Thomas home for?+
Generally up to 80% of the appraised value with prime lenders, less your existing mortgage balance.
Will I pay a penalty to refinance?+
If you break mid-term, yes. The amount depends on your rate type and lender formula, so it should be quoted in writing before you decide.
Does refinancing require re-qualifying?+
Yes, including the stress test with federally regulated lenders. Alternative lenders have different criteria and different costs.
Refinance or HELOC?+
A refinance suits a defined lump sum at a lower rate; a HELOC suits ongoing, unpredictable draws. Combination products can do both.
Find out what refinancing would actually cost you
A short conversation is usually enough to know what's realistic. No obligation, no pressure.